Nobody’s Unpredictable© 2011 Ipsos Canadian Public Affairs AdvisoryAll rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.

Receivable Management AssociationReputation and Public PerceptionNovember 2011

Mike ColledgePresident Ipsos Reid Public Affairs

© 2011 Ipsos2

Reputation and Public Perception

Reputation vs. Brand

Spending your reputation vs. Saving your reputation.

Your reputation influences your ability to achieve your objectives. A strong, positive reputation improves: your lobbying efforts your marketing your earned media and crisis communications your staff recruitment

Your reputation isn’t static, you can grow it and change it to suit your needs.

If you don’t control your reputation – others will.

© 2011 Ipsos3

Tools for understanding and building reputation

The challenge is fitting the pieces of your reputation together

Marketing Efficiency

Communications

Key Stakeholders

Operational Environment

Building Reputation

Reputation Drivers

© 2011 Ipsos4

Without awareness there is no reputation

Familiarity is the bedrock of reputation

In general, familiarity breeds favourability

Trust is built by consistently delivering on your promises

Advocates endorse your reputation and help to pull others up the reputation pyramid

Building a strong reputation helps an organization create and protect value by establishing a reservoir of goodwill to draw upon when challenges and difficulties arise

TrustNET on

trustworthiness

FavourabilityNet “on how favourable or unfavourable is your overall

opinion or impression of <company>.

Familiaritypercentage “very well”, or “fair amount” on how well you feel you know <company>.

AwarenessPercentage “heard of”, “just a little bit”, “fair amount”, or “very well” on how well you feel you know <company.

AdvocacyNet score

Steps to building a strong reputation

© 2011 Ipsos5

Identifying the drivers of reputation tells you which levers to pull in order to lift your

reputation Identify what issues move stakeholders

up the reputation pyramidDrivers of reputation include elements of what a company does (product quality, innovation) as well as what it stands for (business acumen, ethics, corporate social responsibility)

What drives your reputation?

© 2011 Ipsos6

Reputation is not static and can be improved through effective communicationsIpsos has developed a methodology for testing initiatives specifically aimed at improving reputation

• These initiatives can be existing initiatives or prospective initiatives

Source credibility Message awareness and/or credibility Message impact/importance Ranking of messages to guide investment Ability of messages to move opinions

Communication planning identifies the best way to communicate with consumers/stakeholders

© 2011 Ipsos7

Reputation influences the willingness of stakeholders to advocate, invest and regulate in favour of your company

Elite stakeholders lead consumers opinions

Key Stakeholders

Having stakeholders on your side is key

© 2011 Ipsos8

A negative news cycle is the enemy of good reputation management. Companies need to understand the news environment in which they operate.• We measure both the perceptions of the news cycle AND can link

media content analysis to reputationCompanies must understand the industry environment in which they operate:• We can measure demand side/regulatory risk, industry

constraints and financial performance

News impact Demand side/regulatory risk Industry factors Financial performance Social context

Reputation is influenced by the environment in which you operate

© 2011 Ipsos9

Improving marketing efficiency through a

strong reputation

Building strong relationships with the

people who matterMeasuring the impact of

the organisational environment

Building Reputation

Maximising the impact of

communications

Pressing the right buttons

It’s about understanding how your reputation fits together and taking steps to manage it successfully

© 2011 Ipsos10

Your sector’s reputation today

Mostly neutral but among those who have developed an opinion its 2 to 1 negative.

Majority recognize that accounts receivable is a necessary part of every business.

Contact matters, with those people you have contacted holding a more negative view.

© 2011 Ipsos11

% Favourable (Very/Somewhat) 2006 2007 2008 2009 2010Food and Beverage 64 - 64 62 60Electronic Goods 63 60 61 58 57Retail 59 63 58 54 56Information Technology - 56 59 57 55Manufacturing - - - 48 47Shipping/Courier 49 - - 46 45Household Cleaning Products 48 - 48 47 45Confectionary - - 36 37Automotive 44 43 42 44Personal and Beauty Products 43 - 41 39 39Breweries - - - 41 38Banking (** financial services in 2006) 49** 46 49 48 46Telecommunications - 53 - 43 44Alcohol and Spirits - 44 - - 38Quick Service Restaurants - - - 40 39Pharmaceuticals - 49 48 43 42Airlines - 44 - - 37Soft Drinks - 45 - 36 34Mining and Metals - 31 - 30 29Crown Corporations -- - - - 25Insurance - 25 - 31 31Mortgage Lenders - - 28 26 24Credit Card - - - 28 28Oil and Gas - 33 27 28 27The Federal Government -- - 33 29 25The Provincial Government - 32 27 23

Reputation of sectors by years

© 2011 Ipsos12

Total

18-34

35-54

55+

<HS

HS

Post Sec

Univ Grad

Male

Female

33%

33%

30%

38%

33%

32%

35%

34%

27%

39%

53%

52%

57%

50%

50%

54%

53%

52%

56%

51%

11%

13%

10%

10%

12%

12%

9%

12%

13%

9%

2%

2%

3%

2%

5%

2%

3%

1%

4%

1%

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Age

Education

Gender

I think the accounts receivable industry is a necessary part of every business because there will always be people who are late making payments.

Q3_2. Please indicate if you agree or disagree with each of the following statements. Please respond by indicating either strongly agree, somewhat agree, somewhat disagree or strongly disagree.Base: All respondents (n=1015)

Accounts receivable is a necessary part of every business

© 2011 Ipsos13

Total

18-34

35-54

55+

<HS

HS

Post Sec

Univ Grad

Male

Female

15%

15%

13%

17%

11%

17%

12%

18%

15%

15%

55%

60%

50%

56%

59%

58%

55%

47%

52%

58%

30%

24%

37%

27%

30%

25%

34%

35%

33%

27%

Generally positive Neutral Generally negative

Age

Education

Gender

Q1. Almost every business has an accounts receivable unit or hires an outside agency to contact people when they are behind in making loan repayments or to collect debts when people have failed to pay for services and products that they have already received. When you think about the accounts receivable industry would you say that your views are generally positive, for the most part neutral or generally negative?Base: All respondents (n=1015)

Majority have a “neutral perception” of accounts receivable

© 2011 Ipsos14

•A necessary activity, people doing their job•Customer’s responsibility to pay•Lack of experience / contact•Positive experience / contact

What drives positive - negative perceptions?

Neutral

Positive

Negative

15%

55%

30%

•Lack of experience / contact•A necessary activity, people doing their job

•More likely to have been contacted by accounts receivable•Reputation – aggressive, abusive, rude, persistent, unhelpful, unfriendly

Q2. Why do you say that your views are ?

© 2011 Ipsos15

Q2. Why do you say that your views are positive?Base: All respondents (n=148)

I haven't dealt with them/ never experienced itI rarely/never have any problems/ don't use the services/ doesn't

affect meI pay my bills on time/ I have no debt

Never had a bad experienceUnfamiliar with the service/ agency/ industry

They are just doing their jobThis job/ service/ agency is needed/ necessary

Difficult/ unpleasant jobIt hasn't changed/ it's part of life

Everyone should pay his/her bill (on time)Shouldn't buy what you can't afford

Good service (rep)Professionalism/ does a great job/ gets the job done

Compassionate/ understanding/ helpfulPleasant/ polite/ respectful

Other generally positive mentions

I/ know people who work in this industry (accounts receivable, collector, etc.)

8%7%

5%3%

2%

12%9%

1%1%

15%3%

5%4%4%

3%

13%

6%

Why do you (15%) say your views are positive?

25 - No personal experience

16 - A positive reputation/experience

18 - Customers’ responsibility

23 - A necessary activity

© 2011 Ipsos16

Q2. Why do you say that your views are neutral?Base: All respondents (n=543)

I haven't dealt with them/ never experienced it

Unfamiliar with the service/ agency/ industryI rarely/never have any problems/ don't use the services/ doesn't

affect meI pay my bills on time/ I have no debt

I don't care/ not concerned

They are just doing their job

This job/ service/ agency is needed/ necessary

Everyone should pay his/her bill (on time)

Difficult/ unpleasant job

It hasn't changed/ it's part of life

Unfriendly/ impolite/ mean/ rude/ ignorant

They harass/ threaten/ intimidate you

Very persistent/ constantly calling people

Too aggressive/ abusive

I'm in between/ partially positive and partially negative

I have had/ seen good and bad experience

15%

9%

6%

5%

5%

7%

5%

3%

1%

1%

2%

2%

1%

1%

4%

3%

Why do you (55%) say that your views are neutral?

44 - No personal experience

6 - A negative reputation/experience

17 - A necessary activity

© 2011 Ipsos17

Q2. Why do you say that your views are negative?Base: All respondents (n=324)

They harass/ threaten/ intimidate you

Unfriendly/ impolite/ mean/ rude/ ignorant

Too aggressive/ abusive

Very persistent/ constantly calling people

I/ family/ friends/ have had an (bad) experience

Unhelpful/ wouldn't listen/ compromise

Bad/ wrong tactics used

Heard/ read negative comments/ stories about them

Untrustworthy/ dishonest/ crooks

Poor customer service/ unprofessional

They are calling from somewhere else/ language barrier/ hard to understand

Difficult/ unpleasant job

Uninformed

29%

25%

11%

8%

7%

6%

5%

4%

4%

4%

3%

3%

3%

Why do you (30%) say that your views are negative?

© 2011 Ipsos18

Total

18-34

35-54

55+

<HS

HS

Post Sec

Univ Grad

Male

Female

36%

34%

35%

41%

44%

33%

40%

34%

35%

38%

53%

53%

53%

54%

41%

55%

52%

55%

53%

53%

9%

12%

10%

4%

12%

10%

6%

9%

9%

8%

2%

2%

3%

1%

3%

2%

2%

2%

3%

1%

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Age

Education

Gender

Q3_1. Please indicate if you agree or disagree with each of the following statements. Please respond by indicating either strongly agree, somewhat agree, somewhat disagree or strongly disagree.Base: All respondents (n=1015)

I would have a more positive impression of the accounts receivable industry if I knew the industry had national standards and practices and people employed in the industry were trained and certified to ensure compliance with these national standards.

Impact of national standards and practices

© 2011 Ipsos19

18-34

35-54

55+

Male

Female

31%

35%

23%

32%

28%

69%

65%

77%

68%

72%

Yes No

Age

Gender

Q4. Have you personally ever been contacted by a company you deal with or by an outside collection agency and asked to make payments because you were behind in paying for a service or repaying a loan?Base: All respondents (n=1015)

Contacted by debt collection agency/company

© 2011 Ipsos20

<$30K

$30K - <$60K

$60K+

<HS

HS

Post Sec

Univ Grad

38%

30%

26%

40%

33%

31%

19%

62%

70%

74%

60%

67%

69%

81%

Yes No

Q4. Have you personally ever been contacted by a company you deal with or by an outside collection agency and asked to make payments because you were behind in paying for a service or repaying a loan?Base: All respondents (n=1015)

Income

Education

Contacted by debt collection agency/company

© 2011 Ipsos21

BC

AB

SK/MB

Ontario

Québec

Atlantic

30%

25%

30%

35%

26%

26%

70%

75%

70%

65%

74%

74%

Yes No

Region

Q4. Have you personally ever been contacted by a company you deal with or by an outside collection agency and asked to make payments because you were behind in paying for a service or repaying a loan?Base: All respondents (n=1015)

Contacted by debt collection agency/company

© 2011 Ipsos22

NoYes

16%12%

60%

44%

24%

44% Generally nega-tive

Neutral

Generally posi-tive

Impact of having been contacted by accounts receivable

Yes No

42%34%

46% 56%

9% 8%2% 2%

Strongly disagree

Somewhat disagree

Somewhat agree

Strongly agree

I would have a more positive impression of the accounts receivable industry if I knew the

industry had national standards and practices and people employed in the industry were trained and certified to ensure compliance

with these national standards.

When you think about the accounts receivable industry would you say that your

views are generally positive, for the most part neutral or generally negative?

Have /have not been contacted by account receivable

© 2011 Ipsos23

Final Thoughts

You can’t determine a strategy or way forward based on a few questions.

Right now the sector’s perception is mostly neutral. A blank slate, an opportunity for you to shape your reputation to suit your needs.

First step is determining what you want your reputation to be and if changing it/improving it is a priority.

Second is looking at your environment (Are there events on the horizon that could negatively impact on your reputation? Are there objectives that you want to accomplish that would benefit from a stronger, more positive reputation?)

Third is looking at current public perceptions to develop a strategy and plan.

Lots of possibilities: Standards, professionalism, privacy (protecting / serving consumers) Face of accounts receivable (ordinary people) An important part of every business (adding value)

Nobody’s Unpredictable© 2011 Ipsos Canadian Public Affairs AdvisoryAll rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.

Receivable Management AssociationReputation and Public PerceptionNovember 2011

Mike ColledgePresident Ipsos Reid Public Affairs